ISLAMABAD, Feb 5: The Afghan government has asked Islamabad to direct the Sindh government to withdraw the suspended levy of infrastructure cess on goods imported under Afghan Transit Trade (ATT).

An official source told Dawn that a formal request of the Afghan government in this regard was conveyed to Prime Minister Shaukat Aziz by Afghan finance minister in a meeting held here recently.

According to the official, the Afghan government has asked for complete withdrawal of the cess and abolishing of negative list under the ATT, which they believed halted the smooth flow of goods under the scheme.

The Sindh government has extended the infrastructure cess waiver to the Afghan importers up to March 31, 2005 on goods imported under ATT. Earlier the government waived the levy up to December 31, 2004.

According to the official, a high-level official delegation would leave for Kabul later next month to negotiate the withdrawal of remaining six items from the negative list of ATT.

The CBR has recommended to the government to ask the Afghan government to raise import duty on these items equivalent to that charged on import of these goods in Pakistan so that it could become less attractive for smuggling.

The items to be considered for withdrawal included: cigarillos and cigarettes of tobacco or of tobacco substitutes; dyes and chemicals; cooking oil; tyres and tubes; soap; auto-parts (all sorts) and telephone sets.